Gold, silver prices fall as US dollar strengthens
What's the story
Gold and silver prices fell on Tuesday, after a two-day rally. The decline comes as the US dollar strengthened from a more than one-week low. The change in currency value has made these precious metals costlier for international buyers. Investors are now looking forward to key US jobs and inflation data later this week, which could provide clues about the Federal Reserve's future interest rate decisions.
Price changes
Gold futures decline by 0.8%
Spot gold fell 1% to $5,016.56 per ounce today, after a 2% rise on Monday when the dollar had weakened to a more than one-week low. The metal had hit an all-time high of $5,594.82 per ounce on January 29. US gold futures for April delivery also declined by 0.8%, trading at $5,041.6 per ounce.
Silver dip
Spot silver dips by 2.5%
Spot silver witnessed a major dip of 2.5%, trading at $81.31/oz after nearly a 7% surge in the previous session. The metal had hit an all-time high of $121.64 on January 29. The US dollar index rose by 0.2% from its previous session's more than one-week low, further adding to the cost of greenback-priced metals for overseas buyers and contributing to their price fluctuations today.
Economic forecast
Federal Reserve's interest rate decisions could be impacted
White House economic adviser Kevin Hassett said on Monday that US job gains could slow down in the coming months due to slower labor force growth and higher productivity. This prediction is part of a wider debate at the Federal Reserve and could influence future policy decisions. Investors are anticipating at least two 25-basis-point rate cuts in 2026.